Petrobras announces fuel price hike

Friday, April 21, 2017

Brazil's state-run energy company Petrobras has raised wholesale fuel prices as it moves to counter the impact of a rebounding global oil market.

In a statement, Petrobras said it lifted average refinery prices for diesel by 4.3% and gasoline by 2.2%, starting on Friday.

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"The decision is mainly explained by the increase in international derivative prices, which more than offset the appreciation of the real against the US dollar," the Rio de Janeiro-based firm said.

In October, Petrobras reduced wholesale fuel prices for the first time in nine years, marking down gasoline by 3.2% and diesel by 2.7%.

The firm has recently sold gasoline and diesel above international price benchmarks, capitalizing on the lower cost of imports to boost margins.

But the strategy means the company risks losing market share as it fails to compete with rivals.

Petrobras previously subsidized fuel as part of a government measure to control inflation.